Transit Public-Private Partnerships: Legal Issues (2014) / Chapter Skim
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7 PPP contract.41 There are issues concerning whether PPPs are sufficiently transparent and whether a PPP means the loss of control of planning or operational issues, such as the setting of transit fares.42 Transit agencies responding to the survey also observed that there are some inconveniences in using a PPP. A PPP may be a lengthy, complicated project,43 there is a need for confidentiality during the selection and negotiation process,44 and a transit agency has less control of a facility subject to a PPP.45 Although TriMet states that there were no disadvantages in using a PPP for TOD, it stated that there are "excessive" insurance requirements for a PPP project currently in the design phase.46 Finally, regardless of the reasons for a PPP, there seems to be a consensus that a successful PPP requires political and public support; a process for the competitive selection of a proposal and the private partner; sufficient funding; a reliable source of future revenue; a proper allocation of the risks of a PPP between or among the partners; and a clear understanding of and compliance with federal, state, and local legal requirements, including land-use and environmental requirements.
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8 21st Century (TEA-21) clarified that turnkey projects "could include designing, building, operating, or maintaining a transit system or operable segments of a transit system."51 In 2005, Section 3011(c)
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9 • When a contractor assumes the risk for the quality of a project (e.g., material and workmanship or performance guarantees) , a public partner has less responsibility for inspections and testing during the construction of the facility.66 • Construction may begin before the details of a project are finalized.67 • The "private partner is responsible for timely project completion within the specified budget."68 • The private partner "assumes the risk of changes in labor and material costs, cost management, and efficient construction practices."69 • A DB approach may "result in cost savings, price certainty and time savings."70 It has been argued that DB contracts have some limitations.
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10 New Jersey.80 Three agencies responding to the survey selected DBOM contracting for their PPP projects.
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11 structability [and] value engineering" on a "fast tracked project delivery schedule."98 4.
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12 ject.115 The project is being developed as a PPP with Miami Access Tunnel, LLC (MAT) , which has two finance investors, Meridiam Infrastructure Finance, in which nine banks reportedly participated with 90 percent equity, and Bouygues Travaux Publics, with 10 percent equity.
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